Jet Engine manufacturer Rolls Royce has agreed a financial settlement with Qantas after the mid-air explosion of one of its engines caused the entire A380 fleet to be grounded for safety checks and tests.

The company will pay the airline £62 million in compensation.

No one was hurt in the incident last November but the time taken to check the rest of the fleet for safety cost the airline dearly in cancelled flights and also may have dinted its reputation. The carrier then brought legal proceedings against Rolls Royce but this week’s announcement of the settlement has ended the row.

A Qantas statement said: “Qantas looks forward to a continued strong relationship with Rolls-Royce on the basis of the settlement announced today.”